Photo by Governor Earl Ray Tomblin F/Flickr
British businesses have had a sigh of relief after regulators from the United States of America stopped the imposition of a large import tariff on aeroplanes that were made partly in the United Kingdom.
The International Trade Commission of the United States ruled against a claim by Boeing, an aerospace company, which claimed that rival Bombardier had received subsidies that were unfair. This was originally upheld by the Department of Commerce of the United States but the decision from yesterday reverses that.
This implies that Bombardier has also avoided duties of almost 300 percent on its products, which are partially made by thousands of workers that are based in Belfast.
Shares in the Toronto-listed Bombardier rose by 16 percent at the close yesterday, taking them to the highest level in three years.
The company described the ruling as “a victory for innovation, competition, and the rule of law.”
GMB Union represents the workers of Bombardier. It said that it was a “sweet relief” for the Northern Ireland economy as a whole.
Michael Mulholland, the GMB organiser stated: “Hopefully this can now be an end to the stress and worry for our Bombardier members, and they can concentrate on the job they’re paid to do.
“This whole Bombardier saga must act as a warning to the UK Government about the kind of battles it faces to defend UK jobs and industries as we leave the EU and face the increasingly hostile territory of trade wars on our own.”
The chief executive of aerospace trade organisation ADS, Paul Everitt, stated: “This judgment from the US International Trade Commission is positive news that will be warmly welcomed by Bombardier, its workforce in Belfast and the whole supply chain of companies in the UK and Ireland.”
Delta Air Lines, whose purchase of various aircrafts from Bombardier was the subject of the said dispute, said that it was satisfied with the result.
“Delta Air Lines is pleased by the U.S. International Trade Commission’s ruling rejecting Boeing’s anti-competitive attempt to deny US airlines and the U. traveling public access to the state-of-the-art 110-seat CS100 aircraft when Boeing offers no viable alternative.”